Citizens & Northern Corp · NASDAQ:CZNC

Citizens & Northern — Merger or Acquisition (April 2025)

15 slides from Citizens & Northern's merger presentation, Apr 23, 2025

  1. Slide 1: Strategic Acquisition Expanding Our Presence in Central Pennsylvania

    + Strategic Acquisition Expanding Our Presence in Central Pennsylvania April 23, 2025 EXHIBIT 99.2 Filed by Citizens & Northern Corporation Pursuant to Rule 425 under the Securities Act of 1933 and deemed filed pursuant to Rule 14a-12 under the Securities Exchange Act of 1934 Subject Company: Susque

  2. Slide 2: Forward Looking Statements

    Forward Looking Statements: This presentation contains statements which, to the extent that they are not recitations of historical fact may constitute forward-looking statements for purposes of the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended. Such forward-

  3. Slide 3: Transaction Highlights

    3 Transaction Highlights • Significantly enhances a premier Pennsylvania community bank with $3.2B in pro forma total assets • Key extension of legacy C&N markets provides scale in Central Pennsylvania • Financially compelling with ~17% EPS accretion and single-digit tangible book value dilution • W

  4. Slide 4: Transaction Overview

    4 Transaction Overview Deal Structure  100% stock consideration  Fixed exchange ratio of 0.80 shares of CZNC stock for each SQCF share  Implied deal price per share of $15.58 or aggregate transaction value of $44 million¹ Valuation Multiples  Price / TBVPS: 126%  Price / 2026E EPS: 13.5x  Pric

  5. Slide 5: Overview of Susquehanna Community Financial, Inc.

    5 Overview of Susquehanna Community Financial, Inc. Franchise Overview Geographic Footprint Q1 2025 Financial Highlights Balance Sheet ($M) MRQ Profitability (%) Assets $598,404 ROAA 0.53% Gross Loans HFI 401,650 ROATCE¹ 9.1% Deposits 511,887 Net Interest Margin¹ 2.83% Loans HFI / Deposits (%) 78.5%

  6. Slide 6: Pro Forma Company Snapshot

    6 Pro Forma Company Snapshot Top 10 Pro Forma Deposit Market Share Pro Forma Geographic Footprint Pro Forma Financial Highlights² CZNC (28) SQCF (7) Williamsport Lewisburg Northumberland Mifflinburg Doylestown Chesterbrook York Lancaster Newtown Hornell Emporium Coudersport Elmira Knoxville Wellsbor

  7. Slide 7: Diversified Loan Portfolio and Deposit Funding Base

    7 Diversified Loan Portfolio and Deposit Funding Base 1-4 Family 28.6% Multifamily 9.7% C&D 7.0% Consumer1 C&I 5.4% .3% OO CRE 17.6% Non-OO CRE 16.8% Farm 11.7% Other 2.1% 1-4 Family 31.9% Multifamily 5.4% C&D C&I 6.8% Consumer0.9% 8.8% OO CRE 14.6% Non-OO CRE 25.1% Farm 0.5% Other 6.0% Noninterest-

  8. Slide 8: Thorough Due Diligence Process

    8 Thorough Due Diligence Process Business Overview & Strategy Accounting & Tax Lending & Credit Quality Legal, Regulatory, & Audit Balance Sheet Management Risk Management & Compliance Securities Portfolio & Interest Rate Risk IT, Systems, Data Processing, & Cyber Security Vendor Management & Key Co

  9. Slide 9: Pro Forma Financial Impact

    9 Pro Forma Financial Impact Earnings Impact TBV Impact Pro Forma Capital ~17% 2026E EPS Accretion ~17% 2027E EPS Accretion ~(7.9)% Dilution at Close ~2.75 years Earnback¹ ~7.8% TCE/TA ~8.9% Leverage Ratio ~11.5% Tier 1 Ratio ~13.5% TRBC Ratio 1) Tangible book value earnback calculated using the cro

  10. Slide 10: Disciplined Acquiror and Experienced Integrator

    $1.7 $2.2 $2.3 $2.5 $2.5 $2.6 $3.2¹ $0.4 $0.6 $0.6 2019 2020 2021 2022 2023 2024 2025Q1 Disciplined Acquiror and Experienced Integrator 1) Pro forma for the acquisition of SQCF Source: S&P Capital IQ Pro, Company documents Historical Asset Growth ($B) Evolution of Geographic Footprint Williamsport L

  11. Slide 11: Appendix

    Appendix 11

  12. Slide 12: Key Transaction Assumptions

    12 Key Transaction Assumptions One-Time Costs  $6.6 million pre-tax one-time merger expenses, 100% realized at/prior to close Targeted Cost Savings  Cost savings estimated at 30% of SQCF’s projected noninterest expense  Phased-in 75% in 2025 and 100% thereafter Other Assumptions  Core deposit in

  13. Slide 13: Citizens & Northern Q1 Snapshot

    13 Citizens & Northern Q1 Snapshot For Fiscal Periods Ended 2024Q1 2024Q2 2024Q3 2024Q4 2025Q1 Balance Sheet ($M) Total Assets $2,522 $2,593 $2,671 $2,611 $2,609 Gross Loans HFI 1,872 1,893 1,893 1,896 1,898 Deposits 1,996 2,059 2,136 2,094 2,102 Gross Loans HFI / Deposits 93.8% 91.9% 88.6% 90.5% 90

  14. Slide 14: CZNC Non-GAAP Reconciliations

    14 CZNC Non-GAAP Reconciliations Source: Company documents 2024Q1 2024Q2 2024Q3 2024Q4 2025Q1 Tangible Common Equity/Assets Total Assets - U.S. GAAP $2,521,537 $2,593,122 $2,670,822 $2,610,653 $2,609,228 Less: Intangible Assets, Primarily Goodwill (54,877) (54,779) (54,682) (54,585) (54,479) Tangibl

  15. Slide 15: SQCF Non-GAAP Reconciliations

    15 SQCF Non-GAAP Reconciliations Source: Company documents 2025Q1 Tangible Common Equity/Assets Total Assets - U.S. GAAP $598,404 Less: Intangible Assets 0 Tangible Assets $598,404 Total Stockholders' Equity - U.S. GAAP $35,075 Less: Intangible Assets 0 Tangible Common Equity $35,075 Tangible Common

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